Difference between IoT and Blockchain

The Internet of Things, also known as IoT, is likely to be the next major paradigm shift in the field of information technology after the cloud and the most significant technological advancement since the introduction of the Internet. IoT holds the promise of integrating physical objects, such as home electronics, into the existing online space. It paves the way for a vast array of new innovation opportunities, which will further contribute to the development of novel types of interactions between humans and things.

We live in a world in which the majority of electronic devices are already connected to the Internet or will be doing so in the not-too-distant future. If things continue as they are, then IoT will usher in the subsequent industrial revolution and will radically alter the way in which we engage with technological systems.

Transactions between machines are made possible through the use of blockchain technology, which can be seen as a manifestation of IoT. Read through this article to find out more about IoT and Blockchain and how they are different from each other.

What is IoT?

IoT refers to the collective network of linked objects as well as the technology that permits communication between devices and the cloud, as well as between the devices themselves. As a result of the development of low-cost computer processors and high-bandwidth telecommunications, there are currently billions of gadgets that are linked to the Internet. This means that sensors could be used in everyday items like toothbrushes, vacuum cleaners, vehicles, and machinery to collect data and respond intelligently to what their owners do.

There has been a significant reduction in the cost of integrating processing power into relatively tiny items in recent years. For instance, it is possible to add connection with Alexa voice service capabilities to MCUs with less than 1 MB of embedded RAM. This might be done, for example, for light switches.

Putting Internet of Things (IoT) technology into people's homes, places of commerce, and places of work has spawned a whole new sector of the economy. These connected devices are capable of automatically sending and receiving data via the internet. The term "Internet of Things" refers to the network that connects all of these "invisible computing devices" together as well as the technology that is linked with them.

The standard Internet of Things system accomplishes its goals by collecting and exchanging data in real-time.

Components of an IoT System

There are three parts to an IoT system:

  • Graphical user interface − A graphical user interface may be used for the management of an Internet of Things device or fleet of devices. A smartphone application or website that can be used to register and operate smart devices is a common example. Other examples include the following.
  • Smart devices − This refers to a piece of hardware that has computer capabilities and may take the form of a television, a security camera, or even workout equipment. It does this by gathering information from its surroundings, user inputs, or use patterns and then communicating this information to and from its Internet of Things application through the internet.
  • IoT application − An Internet of Things application is a collection of different services and pieces of software that work together to integrate the data that is gathered from different Internet of Things devices. In order to evaluate this data and arrive at well-informed conclusions, it employs a technique known as artificial intelligence (AI) or machine learning. These choices are then sent back to the Internet-of-Things device, which responds smartly to what it gets.

What is Blockchain?

Blockchain is not your average database because of the way it stores information; instead of storing things of monetary value under the control of a central authority, it is a global database that is decentralised and extremely secure.

The distributed ledger technology known as blockchain is a new digital medium for value that keeps your online transactions safe and secure. It is comparable to a ledger of transactions, except that it is dispersed across the entirety of the business network.

Using cryptography, blockchain can provide an open and decentralised database that can record every transaction that has monetary value. This includes transactions involving anything of value, such as real estate, automobiles, lands, patents, stocks, bonds, copyrights, and so on.

A blockchain is, as its name suggests, a chain of records that are referred to as blocks. These blocks contain all of the records of every transaction that has ever been made across a peer-to-peer network. The transactional records can only be viewed by those members of the network who have access to them.

Difference between IoT and Blockchain

The following table highlights the major differences between IoT and Blockchain:

Basis of comparison IoT Blockchain

A technological platform that facilitates the integration and exchange of data produced by smart devices.

A public and decentralised database that records every transaction, including the monetary value of those transactions.


A worldwide network of real-world items known as things that are linked to the internet.

A brand new digital medium for value that guarantees the safety and security of your transactions carried out online.


Connecting everything that exists to the internet in real time is the core idea behind IOT.

The plan is to keep a record of everything of monetary value, but there will be no central authority to do so.


IoT is a network of interconnected things that can sense, act upon, and communicate with each other and with the environment, with or without the involvement of human beings. The goal is to enable commonplace items and the environment with intelligence so that they can process and provide information in real time. In theory, any object can be transformed into a smart object through the use of appropriate manipulation.

IoT solutions are leveraged by blockchain technology to make machine-to-machine transactions possible. Blockchain also maintains records of every transaction that has ever been made across a peer-to-peer network. Together, they present a number of potential advantages and make it possible for intelligent devices to operate independently and without the oversight of any central authority. They are not mutually exclusive forms of technology; rather, they are complementary to one another.

Updated on: 09-Aug-2022


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